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olya-2409 [2.1K]
3 years ago
8

You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock

B has only modest expected earnings growth, and stock C is expected to generate poor earnings growth. According to LaPorta's 1996 study, which stock is likely to generate the greatest alpha for you?
Business
1 answer:
WINSTONCH [101]3 years ago
7 0

Answer:

Stock C is correct answer

Explanation:

According to the investigation of LaPorta's 1996 study Stock expected to have poor earnings growth has the greatest alpha.  Unlike, the option stock A and option stock B with modest and higher earnings growth.

Corrct Answer: Stock C.

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g Companies can help to ensure they do their part toward achieving the Sustainable Development Goals set out by UNCTAD by
Lunna [17]

The correct answer to this open question is the following.

Companies can help to ensure they do their part toward achieving the Sustainable Development Goals set out by UNCTAD by establishing a continuing education program so employees can do what is expected on this issue. Management can start funding campaigns to donate some money to the cause. Ask employees to give volunteering time to noble causes and environmental. The company has to set an example from top management to the operational level to do the right thing always, no matter the circumstances.

We are talking about the sustainability development goals created by the United Nations Conference on Trade and Development (UNCTAD).

8 0
3 years ago
When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held c
Dafna1 [17]

Answer:

The answer is: C) decreases ; increases

Explanation:

The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.

The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.

4 0
3 years ago
A company has a $36 million portfolio with a beta of 1.2. The futures price for a contract on the S&P index is 900. Futures
Blizzard [7]

Answer:

Explanation:

A:

Number of contracts required:

= (0-1.2)×36,000,000÷(900×$250)

= -192

Since negative value, short 192 contracts.

B:

= (0.9 - 1.2)×36,000,000÷(900×$250)

= -48

Since negative value, short 48 contracts.

C:

= (1.8 - 1.2)×36,000,000÷(900×$250)

= 96

Since positive value, long 48 contracts.

7 0
3 years ago
If the Fed purchases government securities from a commercial bank, which of the following will happen?a.The Fed will increase th
solniwko [45]

Answer:

The correct answer is letter "E": "A" and "B".

Explanation:

In order to accomplish its monetary policy, the Federal Reserve (<em>Fed</em>) buys and sells securities in the open market to control the money supply. If there is more money supply in the open market, loan rates will decrease allowing investors to access more capital. At the same time, the Fed reserves and assets will increment.

3 0
3 years ago
As Shirley responded to a personnel director's concerns about changing to the health-care plan her firm offered, she said, "I ca
erik [133]

Answer:

<u>Reffeal</u>

Explanation:

A letter of reference is an effective method for establishing clear communication with information needed to clarify possible doubts and bring credibility. It should be written in a formal manner, highlighting the strengths of the message to be conveyed beyond clear, accurate and honest language.

5 0
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